What kind of interest rate are you earning on your bank account? I'm embarrassed to admit that my emergency fund was pulling in a paltry 0.04%. But no more! I just joined the roughly 30% of Americans who have saving accounts that pay more than 2% APY. Our featured story discusses how much you're missing out if you don't have one: The average savings account balance in America is $8,863, according to the Federal Reserve. With an account paying 0.03% interest, the most you could earn over five years is roughly $13, according to calculations by Bankrate, which surveyed Americans about their interest rates. By contrast, at a digital bank paying 2.5% APY, you could earn up to $1,180 in the same five-year time period. Our savvy Retire with Money Facebook group members often discuss where to find the best interest rates, and I finally joined them. Instead of opening up a brand-new account, I linked my bank account to my existing taxable brokerage account and transferred most of my balance to the money market fund inside. I should have done it long ago, but better late than never!
Best wishes,
Elizabeth
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Billionaire Bill Gates' favorite books include "Upheaval" and "Nine Pints."
READER INSIGHTS
Thanks to all who participated in our Retire with Money Facebook group chat on how to improve the community experience! We decided to revive the book club, but on a seasonal (not monthly) basis. Watch out for our summer title soon! I'll post excerpts of our discussions here for those who aren't on Facebook.
We've also started a weekly discussion based on the latest theme of this newsletter. This week, we talked about how to launch financially independent children. Members had lots of great tips to share, including requiring their teenagers to have a job before they got their driver's license, so they could pay for their own gas. And I loved hearing how many parents had helped their young adults set up Roth IRA accounts. Such a smart move to get those going early!
RETIREMENT NEWS FROM AROUND THE WEB
3 Ways a Roth 401(k) Can Boost Retirement Savings
Last year, only 11% of workers used a Roth 401(k) in plans where one was offered. Here's why you should take another look. CONSUMER REPORTS
People Spent $1.9 Billion Last Year on Apps to Keep Their Brains Sharp as They Age — Here's What Actually Works
While there's no magic bullet, a combination of healthy activities and behaviors can help keep your mind sharp. MARKETWATCH
Grandparents in the U.S. Spend a Whopping $179 Billion per Year on Their Grandkids
The average annual outlay is $2,562 per grandparent, according to an AARP survey. CONSIDERABLE
There Is Too Much Stuff
Research shows that consumers (and retirement savers) get overwhelmed with too many options. THE ATLANTIC
About Elizabeth
Elizabeth O'Brien is a senior writer at MONEY, covering retirement and health care. You can email her at elizabeth.o'brien@moneymail.com and follow her on Twitter at @elizobrien.
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What kind of interest rate are you earning on your bank account? I'm embarrassed to admit that my emergency fund was pulling in a paltry 0.04%. But no more! I just joined the roughly 30% of Americans who have saving accounts that pay more than 2% APY. 
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